NEWAY valves perform in demanding applications

BY MORRIS R. BESCHLOSS

PVF and economic analyst

NEWAY, as the largest industrial valve manufacturer in China, has fulfilled all the qualifications to manufacture a wide range of industrial valves for the most severe and demanding services of the oil, gas, refinery, chemical, marine, power and pipeline industries.

NEWAY’s products include gate, globe, check, butterfly and ball valves with sizes from 1/2 to 64” and pressure rating from ansi Class 150 lb to 2500 lb, and 2000 psi to 5000 psi; materials range from conventional cast or forged steel to special alloy material like Monel, Inconel, Hastelloy or Duplex steel. NEWAY is able to produce valves for working temperature -196 C to 650 C. All are available to comply with ASTM, ANSI, API, BS and DIN standards individually.

NEWAY’s facilities include two valve factories, two foundries and a newly established technical research center in China, and one each assembly plant in Mexico and Saudi Arabia. NEWAY employs a large number of CNC machines for most valve fabrication, and are among the few manufacturers who are able to perform in-house fire safety, cryogenic, high pressure gas, high temperature and fugitive emissions tests.

NEWAY’s quality assurance is dedicated to the pursuit of a zero defect valves, and this has resulted in the company claiming to have more quality assurances than most of its competitors). NEWAY is certified by iso 9001 (certificate under dnv), API 6D (registered No. 6D-0285), API 6A (registered No. 6A-0716) and NEWAY’s marine valves are type approved by abs. Moreover, NEWAY is the first valve manufacturer in China to be certified by CE/PED (category IV, mode B+D, certificate under B.V.) and ta Luft for low fugitive emission test. NEWAY also performs the active six sigma quality management system to continually enhance the capacity of process control management based on advanced data statistical analysis. NEWAY’s product warranty is 18 months after shipment or 12 months after installation, which meets industry standards.

NEWAY has a global market strategy, beginning with its base manufacturing center in China and includes a worldwide office/distributor/agent network throughout North America, Europe, Middle East and Far East, where they maintain a stock representing the entire range of NEWAY valves for the convenience of NEWAY’s regional clients. NEWAY’s technical and sales personnel are always ready to assist and help with all of our client’s inquires. They continue to improve valve manufacturing technology and quality, to offer highly competitive prices and on-time deliveries to all clients including end users, engineering contractors and stockists.

For this month’s Q&A, we are pleased to present an interview with Mack McDonald, president  of NEWAY Valve USA LP.

Beschloss: I understand you will orchestrate a full-scale marketing program beginning early in 2008 to take full advantage of the expanded demand for all types of industrial valves, especially carbon and stainless steel. Could you define the scope of your marketing/merchandising approach?

McDonald: Our North American and South American marketing program is to sell our products through distribution. We currently have stocking relationships with three dominant distribution organizations for gate/globe/check and ball valve products. We are working to expand our distribution for other valve products such as butterfly valves, forged steel valves, specialty check valves and high-pressure API 6A products. NEWAY’s North and South American offices, located in Stafford, Texas, and near Sao Paulo, Brazil, will maintain a back-up inventory to support our distribution partners with a local stock.

Beschloss: Your offerings cover the gamut of the industry’s valve componentry. Are you concentrating primarily on specials, or will you focus on a comprehensive approach to valve lines?

McDonald: NEWAY’s approach is to make available valve products for multiple industries; refining, petrochemical, chemical, power generation and commercial ship building. Our strategy is to supply the required flow control products to energy, pipeline and oil/chemical production industries. As a valve manufacturer, our full-scope product offering is not dependent on one or two markets, which should enable NEWAY to keep the factories busy even when some segment of the market are slow.

Beschloss: Where would you position NEWAY as you enter a full-scale marketing effort in 2008?

McDonald: NEWAY is one of the few integrated valve manufacturers. Unlike a majority of the first tier brands, NEWAY has invested in both their own foundries and manufacturing capacity. NEWAY’s wholly owned foundries and valve plants are first-class facilities with the latest equipment and electronic design, order and manufacturing controls. In 10 short years NEWAY has established itself as a primary supplier to a majority of the global refining and chemical companies.

Beschloss: The information we featured in our introduction is certainly impressive. Are engineered products going to be a major selling point in introducing NEWAY?

McDonald: Engineered products are becoming a major part of our annual production. Production of specialty valves for power generation, cryogenic applications and valves of higher alloy materials have increased annually. NEWAY will shortly have our nuclear valve certification, which demonstrates the direction the company is taking.

Beschloss: Tell us about your field sales force. Do you have regional managers and sales reps in place?

McDonald:  Our sales team is developing nicely. Naturally our major stocking distributors have stores all across the country that aid in promoting NEWAY products. We currently have regional sales managers and sales reps in selected regions of the country. We will be adding additional sales managers and sales reps this year.

Beschloss: Since optimum service is critical in this hot industrial market, are warehouses strategically located to service your distributors?

McDonald: As we discussed, NEWAY has major stocking distribution in North America. Our strategy has been to involve major front-line distribution such as Lockwood International, and Red Man (now McJunkin-Red Man) in addition to Warren Alloy. Jag Flo Control Products is the exclusive stocking distributor for NEWAY flanged ball valves and pipe line products in North America. In today’s market with end user distribution alliances, you either make your products available to the alliance team or you don’t sell your valves to that end user. This has been a fundamental change in the way manufacturers go to market as compared to 20 years ago. NEWAY has also committed to maintain a factory inventory in North and South America to support our sales and service efforts.

Beschloss: To put NEWAY on the map, what promotional approaches other than advertising are being taken to accelerate the process?

McDonald: In addition to print advertising, NEWAY participates in several industry trade shows annually. Keeping our people in front of our distribution partners and end users, conducting product introduction and product approval/specification work is an on-going effort to gain end user awareness and recognition of our products.

Beschloss: Are you continuing to be optimistic about the expansion of the nation’s industrial sector?

McDonald: Yes, we see the industrial valve demand continuing to grow in the short term, over next two to three years. Long-term growth in different market segments is hard to predict, but demand for energy products and power should continue. NEWAY is currently capturing market share and is not seeing the full effects of market fluctuations. Our strategy is to offer better service and a quality product at competitive pricing in a mature valve market. NEWAY is fortunate to be able to participate in projects all over the world. With the globalization of major energy companies and a&e firms, NEWAY has been able to benefit from the global sourcing trend.

Beschloss: Will NEWAY participate in the fast-growing export sub-sector, two-thirds of which is made up of industrial products?

McDonald: NEWAY is a Chinese manufacturer that exports approximately 80% of its production output. I’d say yes we have been able to enjoy the global shopping/sourcing phenomenon.

Beschloss: Since your bag of product lines seem amply filled, are there plans to take on other flow control products?

McDonald:  NEWAY is continuing to develop new products. We have a new offering of high-pressure API 6A valves currently being introduced. We are investing in our forged valve and fitting lines, and will have our double off-set butterfly valve hitting the market in 2008. NEWAY is developing a control valve that will be introduced in 2009. Nuclear valves are currently being designed and will be offered upon completion of our factory nuclear certification.

Beschloss: Will NEWAY take advantage of 8/8/08 — Beijing’s massive Olympics later in 2008?

McDonald: The 2008 Summer Olympics is a tremendous opportunity for China to showcase their modern and vibrant country. The industrial world has been involved with China for the past 30 years. With the Olympics you will get two weeks of tv around the world 24 hours a day. NEWAY, like all companies in China, should benefit from this event.

Beschloss: Other than product development and production, will your Chinese partners play an active role in the growth of NEWAY?

McDonald: The management team here has always had active participation from our Chinese partners. In addition to me, Godwin Cheng, one of the four principle owners of NEWAY, lives in Houston and offices in our Stafford corporate office. We also have resident engineers who cycle over for one or two years at a time to support communications and technical support from the factory.